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Limited Liability Partnership Registration

LLP Registration is a popular and well known business structure in the world. Both LLP and Private Limited companies are registered with the Ministry of Corporate affairs under the Central Government.

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Overview
Advantages
Registration Process
FAQ

Overview of Private Limited Company Registration Online in India

Limited Liability Partnership or LLP is a type of partnership firm and one of the most chosen types of business by the entrepreneur. With the benefit of limited liability, LLP is the easiest form of business structure. Limited Liability Partnership registration in India gives complete freedom to partners to form a partnership business structure in which the liability of each member or partner is limited to the sum of money they lend into the business. To make it clear, if the partnership fails in this business structure, creditors or investors cannot demand the partner’s personal assets or property or income.

What is a Limited Liability Partnership Firm or LLP?
Limited Liability Partnership or LLP is a type of business with more extra benefits when compared to a partnership firm. This type provides liability in partnership firm to its partners at a very low abidance cost. Moreover, the Partners of the online LLP registration in India can form their internal business structure similar to a partnership firm.

To be short, LLP registration in India is also considered as a separate legal entity from its members as it holds the power to extend all its property or assets keeping the liabilities of partners limited. Therefore, a Limited Liability Partnership or LLP is a hybrid of both company and a partnership firm.

Advantages of Limited Liability Partnership

Limited Liability

The liability of the partners in LLP is limited to the point of his/her contribution to the firm. This is the most important feature of LLP as all the personal assets of its partners are safe and there is no need to pay the losses or debt of the LLP firm. Besides, innocent partners of an LLP or Limited Liability Partnership firm do not have to pay for the wrong deeds made by some other partner of the firm.

Separate Legal Entity

An LLP is considered as a separate legal entity. This means the firm has assets in its own name and can be sued and can sue. Moreover, not any partner is responsible or liable for another partner’s negligence or misconduct.

Flexible agreement

The partners of LLP registration firm are free to prepare and draft the agreement as they need, with regard to the rules and regulations or rights and duties.

No manager/owner distinction

A Limited Liability Partnership firm has partners, who manage and own the business. An LLPs is different from a private limited company, as its directors may be different from shareholders. Due to this point, VCs do not invest or fund in the Limited Liability Partnership firm.

Less compliance needed

A Limited Liability Partnership firm is an easier and cheaper business structure to run when compared with a private limited company as it holds only three compliances every year. But in the case of a private limited company, it should hold a lot of compliances to fulfill the provision and have to conduct an audit regularly.

Easy to wind-up

Not only is it easy to start a Limited Liability Partnership firm, but it’s also easier to wind-up when compared to a private limited company. Generally, it takes two to three months to complete the winding-up process, whereas it can take more than a year to close a private limited company.

Features of LLP or Limited Liability Partnership
  • It considered a separate legal entity just like other companies
  • The liability of partnership of the firm is limited to the contribution of the amount made by partner
  • Less compliance
  • No need for minimum capital contribution
  • The cost to startup an LLP is low
  • A minimum of 2 partners is needed to incorporate an LLP. There is no limit on admitting maximum number of partners.
  • Among the partners, minimum of two designated partners shall be individuals, and one of them must be resident in India.
  • The duties and rights of designated partners are regulated and controlled by the LLP partnership agreement. They are individuals who are responsible for the compliance of all the provisions of the Limited Liability Partnership Act 2008 and provisions defined in LLP agreement.
  • Importantly, to start your business as a Limited Liability Partnership firm, then you should get it registered under the LLP Act, 2008.

Documents Required

  • PAN Card of shareholders and Directors. A valid passport is a must for foreign nationals.
  • Business Address Proofs such as latest Electricity Bill / Telephone Bill of the registered office address
  • Director’s Address Proof of Shareholders and Directors, such as the latest Telephone Bill / Electricity Bill / Bank Account Statement.
  • NOC or No Objection Certificate to be obtained from the owner(s) of registered office
  • Latest Passport size photograph of Shareholders and Directors.
  • Rent Agreement is needed if the registered office is a rented place.
Registration procedure of Limited Liability Partnership Firm
Before starting the process of registration, apply for the DSC or digital signature certificate of the designated partners of the LLP.
Apply for the DIN of Director Identification Number for all the designated partners or those who propose to be designated partner of the LLP.
LLP-RUN or LLP-Reserve Unique Name form is filed for the reservation of name for proposed LLP which will be worked by the Central Registration Centre under Non-STP. But before proposing the name, it is always good to check the availability of the name on MCA portal.

Here in this step Incorporation of LLP take place

  • The form for incorporation of LLP incorporation shall be filed and submitted along with all needed documents to the Registrar of the state in which the registered office of the LLP is located.
  • LLP registration fees payment must be done as per Annexure ‘A’.
  • This form also allows applying for allotment of DPIN, if the person who is to be nominated as a designated partner does not have a DIN or DPIN.
  • The application for allotment should be made only by two individuals.
  • The application for the reservation may be done through FiLLiP too.
  • If the proposed name is approved, then this approved name can be filled as the proposed name of the limited liability partnership firm.
Filing of a Limited Liability Partnership Agreement is done. LLP agreement is an agreement which governs the mutual rights and duties of the partners and LLP.

Frequently Asked Questions

The DSC is nothing but a Digital Signature Certificate issued by certifying authorities (TCS and n-Code) using that certificate you can sign electronic documents. As, all the documents need a DSC to start up a Private Limited company in India.
Director Identification Number is a unique number issued by the Ministry of Corporate Affairs to applicants on whose name the application is produced, which permits the individual to be a Director in the Company.
The Contribution in LLP means the share of the partners in the form of money, promissory notes, tangible or intangible property, agreements, movable or immovable assets to the Company,
Generally, it takes around 10 working days for the registration process of a limited liability partnership firm in India.
As per the LLP Act, 2008, a minimum of two partners is needed to register an LLP.
Any individuals, company or foreign national can become a partner in an LLP

The name of a Limited Liability Company should be unique and applicable to the service which your LLP is providing. The selected name must not be generic and similar to any other existing name

  • Class 2 digital signature with 2 year validity along with ePass 2003 token.
  • Maximum 4 name options can be given in 1 RUN name form and subject to MCA Approval.
  •  In case of incorporation in Madhya Pradesh, Kerala, Punjab, Karnataka, Andhra Pradesh, Gujarat and UP
  • 2 Directors, Additional Directors can be added for an additional price of Rs.1999/- for each director
  • Annual package price will be applicable up to Rs.20 lakhs turnover per annum
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